MANAGEMENT

CHANGE
IN AJB BUMIPUTERA 1912

OUR TEAM MEMBER :

1
2010 2015 2016-2017 2018
1912 2012
Bumiputera OJK plan to Satuter team took AJBB Begin to sold
BUMIPUTERA OJK start to Management (run off), PT insurance
Faced restructuritat
was Founded supervision AJB was found, several product, find
financial ion
collaboration failed. new BoD
problem

VISION MISSION
• Providing high quality life insurance
To become a strong , modern, products and services as
and profitable national insurance participation for national
development through leveraging
company supported by well-being of Indonesian people.
professional human resources • Operating numerous education and
training to ensure employee
that highly value idealism and competence growth and to increase
mutualism. well-being and productivity in order
to improve company service quality
for policyholders.
• Encouraging motivating and
innovative working environment to
enhance effective and efficient
company internal business process.
2

PORTER’s 5 FORCES

OPPORTUNITY
• Increase 10% in political
conditions will increase life
insurance income around 0.4% ANALYSIS

PESTEL Analysis
• The greater the economic
growth, the consumption of
insurance products will increase
• Annual increase of health costs 1. Supplier Power - FAVORABLE
in Indonesia has reached 36%
over the past 10 years 2. Buyer Power - UNFAVORABLE
3. Rivalry Among Competitors -
UNFAVORABLE

THREAT
The difficulties of insurance 4. Product Substitutes - FAVORABLE
claims caused a decrease in public 5. New Market entrants- UNFAVORABLE
confidence in the insurance
industry
3
Functional analysis
Function Factors Trend/Data/Projection or Impact

Is the employee morale high ? Lack of integrity.

Management
Are organizational reward and
Lack of control
control mechanism effective?

Sales Force Bumiputera using insurance agent as their sales force.

Marketing
Price Higher than competitor.

Segmented customer Gender, age and behaviour.

Liquidity, Expense Claim and

Finance management has deficit in their financial performance,
Premium Growth Ratio.

Production/
Product So many product variation.
Operation
Bumiputera already change their system from
IT IT, Customer Care and Service
convensional to online.
4
Key Internal Issue
Lack of Integrity and Financial
Professionalism 02 Difficulties

01
03

No special regulation Needs of

for mutual insurance 04 Raising Capital
5
BUSINESS MODEL CANVAS
6
8 STEPS KOTTER
Step 1 : Step 2 : Step 3 :
Create a Sense of Urgency Form a Powerful Coalition
Ø Reorganizing the board of
Ø Many individuals disguised as
directors
regional heads acting as BPA
Ø The elected candidates needs
Ø A failed restructuring attraction
to pass the fit and proper test
by OJK
Ø Coalition with the third party
Ø Mis-management and no good
like PPM as an independent
corporate governance (GCG)
institution
Ø No law that regulates the
Ø Coalition with Insurance
company legal entity mutual in
University in Indonesia, like
Indonesia
STIMRA
Create a Vision for Change
“To be a trustworthy partner in life
insurance that generated profitable
investment based on professional,
transparent and customer oriented
value”
Ø Providing high quality life insurance
products and professional services
especially for claim.
Ø Selection and training to form honest
and talented employees with high
competence.
Ø Encouraging motivating and
innovative working environment to
enhance effective and efficient
company internal business process.
Ø Optimizing assets, labor and expense.
6
8 STEPS KOTTER
Step 5 : Step 6 :
Step 4 :
Empowering Employees Planning for and creating
Communicate the Vision
For Broad-Based Action short-term wins
Ø Must implement check and Ø High achieving employees and
Ø Each boss of all divisions can balance systems "SAMBAL” agents can also be rewarded with
(Saksikan, Amati, Bantu Aksi
give an examples of actions bonus or any financial incentive
& Lakukan)
to his/her subordinates Ø Empower them to work with Ø Once the targets are achieved, the
orientation of policy holders.
Ø Give mentoring in each management could announced
Ø Give power to all branch to
division make decision immediately through any means,
Ø Insurance agent need to
collaborate in one system such as meeting, email blast,
Ø Create and develop training in social media postings, and official
align with their needed
competency and social skills letter.
6
8 STEPS KOTTER
Step 7 : Step 8 :
Consolidating Gains and Anchor the changes in
Producing More Change
Ø Top executives need to believe
that considerable change is
absolutely essential
Ø Make new program that wrap
in unique abbreviation align
with integrity
Ø Push change leader to create
new change agents
Ø Create and monitor KPI and
set higher goals
Ø Get used to adapt with new
technology in digitalization
corporate culture
Ø Change people mindset with Conclusion
always give motivation and speech By becoming a limited
to them.
company, AJB Bumiputera
Ø In the recruitment process,
trainings will be given to
can be more developed,
especially in raising more
candidates and new employees to capitals as well as being more
acquire the culture emerged from transparent and professional
the change
Ø Always rejevunate reward and
punishment system in accordance
to shifting era.
Ø Hold some informal out-of-office
activities for employees and agents
Ø A talent pool must be established
to thoroughly select the next
change leaders